Rural Financial Intermediation Programme III (RUFIP III) has the objective to improve livelihoods and reduce vulnerability and poverty through increased incomes and better risk management through financial and non-financial measures. RUFIP III will enable access to financial services to 13.5 million households by 2025 (from 7.6 million households in 2019). It aims to sustainably increase the amount of savings and individual loans which many of the 13.5 million households take and raise the penetration of rural finance of all rural households by 2025.
RUFIP III has four main components:
Component 1: Building capacity of institutions and clients. It aims to strengthen the institutional capacity of Rural Financial Institutions (Micro Finance Institutions and Rural Saving and Credit Cooperatives) to better serve the programme’s target groups.
Component 2: Improving regulation, supervision and institutional discipline. It deals with regulatory capacities for ensuring best performance outputs from RFIs and improved client protection.
Component 3: Facilitating funds flow and diversification of business. It aims to improve financial support mechanisms and increase the range of products and services to meet the requirement of IFAD target groups.
Component 4: Programme Management. It will support the management of the project implementation through Programme Steering Committee and Programme Coordination and Management Unit.
